We suggest that you read this article, where we tried to outline the most important aspects of the fund selection process.

Mutual funds - long-term investment

First of all, it should be noted that investing in the stock market presupposes the general confidence of the private investor in the growth of the country’s economy in the foreseeable future, because any mutual fund, no matter what category it belongs to, is capable of generating income only in a growing market.

In this regard, it is also important to note that a mutual fund is an investment, not a speculative instrument, which implies the long-term nature of investments. Over the long term, the profit that a mutual fund will bring to its investors (with proper management, of course) is the profit of the business of those companies whose shares the fund will hold in its portfolio.

A simple conclusion from this is that you should not try to catch any short-term changes in stock market quotes using this tool, but count on an investment horizon of at least 3 years.

Assess risks

The second important aspect associated with investing in mutual funds is the choice of the level of risk that will be acceptable for a particular investor. Ranges of risk and expected return are determined fund category.

For example, mutual funds aimed at a significant increase in the value of the share have predominantly shares in their portfolios, which also implies a high risk of decreasing the value of the share. Indicative in this sense is certainly the year 2008, when the losses of some mutual funds reached 70-90%.

Mixed investment funds are more conservative, having both stocks and bonds in their portfolios, while bond and money market funds are subject to the least drawdowns in the value of the unit.

Thus, the risk categories of funds are ranked as follows (in descending order): stock and index funds, mixed investment funds, bond funds and money market funds. Standing apart from this list are real estate funds, rental funds, art property funds, etc. Often they are of a closed type or are even intended for qualified investors. Only professionals are recommended to invest in such mutual funds.

In addition to the category, each fund has such important characteristics as type. There are open-ended, interval and closed-end funds. For a private investor, the category means, first of all, the possibility or impossibility of “entering” and “exiting” at any time. Open-end funds allow you to do this almost instantly, interval funds only a few times a year, and closed-end funds are designed for “long-term” money, and therefore do not provide for the possibility of purchasing and redeeming a share during the validity period.

Is it worth relying on profitability mutual fund? Please note that the returns shown by a mutual fund in the past are not a guarantee that returns will remain at the same level in the future. However, a fund's stable returns over several years of operation usually indicate high quality asset management.

Choose a management company

Let us also recall that the property of mutual funds is managed by management companies, under whose “wing” there may be several mutual funds. Management companies also perform the function of placing reserves of non-state pension funds. Therefore, the reliability of a mutual fund is directly related to the reliability of the management company itself.

• Profitability for the previous year;
• Profitability since the beginning of the year;
• Mutual fund lifespan and profitability statistics for several years.

This multifaceted approach will allow you to choose not only a profitable, but also a reliable investment option.

Types of mutual funds

Mutual funds are distinguished according to the scheme of participation and the type of investment objects (stocks, bonds, money market, loans, real estate, artistic values). Each category has its own ratings at different time intervals. At the same time, you should not rely especially on the investment object, since many management companies can quickly change their strategies.

There are three main types of mutual funds:

1. Open- you can buy and sell shares at any time. They have the smallest list of investment objects.
2. Interval- you can buy and sell a share only during a certain period.
3. Closed- you can purchase only when a package is formed, and you can sell a share only after its expiration date. They have the widest range of investment objects.

Ratings of their profitability over the past year

Analysis of the profitability of mutual funds for the previous year allows us to estimate potential income in the medium term. IN Russia this list in the period from 12/31/15 to 12/30/16 is headed by the following packages (according to investfunds.ru):

Open:

• URALSIB Energy perspective - 153,67%;
• Raiffeisen - Electric Power Industry - 115,72%;
• Gazprombank - MICEX Index - Electric power industry - 112,83%.

Interval:

• Calm - 71,86%;
• Arsagera - 55,63%;
• RGS - Prospective investments - 51,98%.

Closed:

• Stock capital - 110 754,22%;
• Favorit Development - 357,26%;
• Tverskaya estate - 105,88%.

Best programs Ukraine in the period from 02/29/16 to 02/28/17 (according to investfunds.ua):

Open:

• Sofievsky - 56,95%;
• Argentum - 56,03%;
• OTP Share Fund - 44,44%.

Interval:

• AURUM - 39,47%;
• Platinum - 15,06%;
• - 13,35%.

Closed:

• SPINNAKER - 14,39%;
• MIZZEN - 7,64%.

Ratings at the beginning of the year

The current rating of mutual funds is reflected by statistics from the beginning of 2017. It demonstrates the dynamics of profitability growth and can be used to assess the current state of the market. On the Russian market The leading positions in terms of share growth for the period from January 1, 2017 are currently occupied by the following packages:

Open:

• INCOME - Bond Fund - 12,89%;
• Sberbank - Telecommunications and Technologies - 9,08%;
• Sberbank - Global Internet - 2,84%.

Interval:

• Raiffeisen - Precious metals - 10,29%;
• VTB - Precious Metals Fund - 8,22%;
• National - Gold - 7,5%.

Closed:

• Land - 5,68%;
• Aruji - real estate fund - 1,47%;
• Solid Real Estate - 2 - 1,02%;

Open:

• KINTO-Equity - 14,57%;
• OTP Share Fund - 10,98%;
• VSPIF "UNIVER.UA/Yaroslav the Mudry: Equity Fund" - 9,77%.

Interval:

• TASK Ukrainian Capital - 6,76%;
• Optimum - 4,4%;

Closed:

• Profi-T Invest - 3,45%;
• SPINNAKER - 0,82%.

Ratings for the last 5 years

If you are looking for long-term investments, you need comprehensive statistics for the last 5 years. In this rating according to statistics of the Russian Federation The following programs turned out to be the most profitable:

Open:

• OLMA - USA - 204,42%;
• Raiffeisen - USA - 201.56%;
• April Capital - Shares of commodity companies - 178,99%.

Interval:

• Arsagera - shares 6.4 - 126,66%;
• Kuznetsky Bridge - 86,33%;
• Calm - 70,64%.

Closed:

• AK BARS - Horizon - 164,11%;
• Passage - 58,35%;
• TFB - Rental investment fund - 56,29%;

Leader data on the Ukrainian market over 5 years are represented by no less high indicators:

Open:

• VSPIF "UNIVER.UA/Mikhail Grushevsky: State Paper Fund" - 147,36%;
• Altus - Deposit - 135,51%;
• VSPIF "UNIVER.UA/Taras Shevchenko: Savings Fund" - 127,27%.

Interval:

• Balanced fund "Parity" - 43,86%;
• Platinum - 6,22%.

Closed:

• GENOA - 28,01%;
• SPINNAKER - 2,98%.

Analytical coefficients of profitability of the investment package

In addition to the level of increase in the value of the share, based on statistical data provided by the mutual funds themselves, the potential profitability of the investment portfolio can be determined by a number of parameters.

The main ones are the coefficients for assessing profitability depending on risk. This includes the Sharpe and Sortino ratios. They are calculated as the ratio of the average reward for the risk level of an investment in a mutual fund to the deviation of the investment portfolio’s profit. In this case, the Sharpe ratio when calculating takes into account portfolio volatility (average deviation), and the Sortino ratio is based on “downward volatility” (return deviation below the minimum level).

The higher these indicators, the more the profitability of the investment package exceeds the level of its risk. Example: Mutual Fund Sberbank - Telecommunications and Technologies has a Sharpe ratio of “-0.067”, and the Ingosstrakh money market package shows a coefficient of “1.159”. In this case, the coefficient “1.159” indicates that the package has a higher return in relation to the risks, and the coefficient “-0.067” indicates that the risk at this stage was not at all justified.

When forecasting the profitability of mutual funds in 2017, you should also take into account:

• α-coefficient- the correctness of the chosen strategy of the management company;
• β-coefficient- market influence on the profitability of the package;
• R2- the relationship between changes in the value of the share and market dynamics.

The α and β indicators must also be greater than zero.

When making a final decision on an investment, you need to understand that the rating of mutual funds by profitability in 2017 is a conditional guideline. The actual risk of a fundamental change in the situation remains. Therefore, you should always diversify risks and conduct a comprehensive analysis of the market and selected management companies.

The stock market continues to be one of the most accessible and profitable tools for accumulating capital. However, not all novice investors have enough experience and enough money to diversify to buy shares. Therefore, mutual funds are the most popular alternative to the stock market, as they allow you to passively invest in various Russian securities and other assets (gold, real estate or foreign shares) and receive a good level of profitability.

2017 was quite a successful year for mutual funds.

Of the 247 open funds, 175 projects closed the year with a profit, and 76 allowed investors to receive an income of more than 10% per annum, and 25 - more than 15%.

Naturally, the numbers are relevant if you invest from the beginning of the year. A significant part of the funds are subject to volatility, and by purchasing shares at a minimum value, one could earn much more.

Based on the results of reporting submitted for the 4th quarter of 2017, the most profitable mutual funds were:

At the end of 2017, the most profitable were mutual funds investing in shares of developing countries and shares of the technology sector.

Funds specializing in mixed investments (mainly stocks and bonds in portfolios) and pure “bonds” performed well. Thus, the Mobile fund of the Sistema Capital company gave a return of 15.06% per annum, and the mutual fund Financier BFA - 16.41%.

For such conservative and risk-free instruments as bonds, this is a very good indicator (in this case, part of the portfolio consists of “junk bonds” with a large coupon income, but low stability, i.e. the funds earned money by balancing between assets and proper diversification) .

Among inexperienced investors, it is believed that it is worth investing exclusively in profitable mutual funds. That's why they look for such ratings, trying to choose the fund with the maximum profit. But is it worth focusing on this indicator? Let's try to figure it out.

Return means that the share price has increased from a certain value at the beginning of the year to another at the end. An investor who bought a share at a lower price will sell it at the end of the year for a profit. However, profitability in a certain year does not mean that in the next year the investor will receive the same or close to it profit. There is a possibility that by the end of next year the share will return to its previous price or drop lower.

Income mutual funds grow on a specific investment idea. In 2017, these were shares of developing countries (mainly members of the BRICS), as well as shares of the technology sector (growth was achieved largely due to the popularity of Bitcoin). It is not a fact that the trend and profit level will continue in 2018.

For example, one of the profitable funds in 2017, China (Otkritie Management Company), showed negative returns in 2016 - the value of the share fell from 1,871 rubles to 1,730 rubles, i.e. by 7.5%, and in 2017 won back the fall and entered the TOP 5 in terms of profitability.

When choosing a mutual fund, you should rely on the profitability of previous years with caution. Analyze why the high profitability was achieved - competent management or was the fund just lucky?

If you take profitability as a key criterion, consider it in dynamics and over a longer period, at least for 3 years. This period is considered the optimal time for holding shares in ownership - the fund has time to work out both declines and rises, and gives an average return. It is important that when selling such shares you will not have to pay income tax.

If we look at the most profitable mutual funds for 3 years, the rating will look completely different:

At the beginning of 2018, the Sberbank Asset Management mutual fund leads in terms of reported returns

Statistics show that only equity funds related to energy or representing a balanced portfolio of shares of the largest companies (blue chips) are in a three-year upward trend.

The strategies of these funds are conservative or moderate, the volatility is not too strong - the average drawdown does not exceed 20%. Therefore, you can count on the fact that in the next three years these mutual funds will demonstrate similar returns or are guaranteed not to lose value.

If you want to make a profit in the long term, when analyzing profitability, pay attention to the following facts:

• Systematicity of profit– if investments work positively from year to year, the chances of a successful completion of the next year are high;
• Drawdown size– conservative strategies provide for drawdowns of no more than 5-7%, moderate ones - up to 15-20%, if the fund allows large losses, there are big problems with its management;
• Correlation with benchmark– they should go approximately on par, if the fund’s profitability graph differs too much from the benchmark – this is an alarming signal indicating problems in management – ​​ideally, the mutual fund’s graph should break away from the index, but repeat it in general terms.

For reference: benchmark in simple words - these are assets on which profitability is assessed. Their role is played by selected securities or indices included in the portfolio of a mutual fund. For example, the Sberbank Balanced Mutual Fund has been using as a benchmark since January 1, 2018 - 50% MCXCBITR Index / 50% Moscow Exchange Index.

On the chart of the Balanced fund from Sberbank you can see the correlation of mutual fund assets with the benchmark

When analyzing the potential return of a fund, pay attention to the following aspects:

• Composition of assets. The most stable and profitable funds are of a mixed type (bonds + shares); investments in mutual funds of shares are traditionally the most profitable, but their shares are more volatile.
• Asset Allocation. You should pay attention to how diversified the investments are and what are the prospects for the largest issuers. If there is an overweight, a stock that has fallen in price can drag down the entire portfolio. This is true for bonds - it’s one thing when a significant part of the assets consists of government bonds, another thing is “junk” ones from the foreign market.
• Dynamics of assets. Note how often managers shake up the portfolio by getting rid of unfavorable issuers, whether the structure is left unchanged, whether new items are included, or the composition of assets is not revised (red flags).
• Net asset value. If the NAV grows, there are more people willing to invest in mutual funds. NAV has little effect on profitability, but the more funds a fund has at its disposal, the larger investments it can make - this increases the chances of a positive outcome. Plus, if a large investor withdraws his money, the manager will not have to urgently get rid of assets in order to pay him the money - there will be reserves.
• Strategy. The greatest profit comes from an aggressive strategy (investing in stocks or other funds), but the value of the share here has the greatest volatility. Investments in bond mutual funds bring stable but small profits. If it is important to preserve rather than increase capital, choose stable projects rather than the most profitable ones.
• Team. The professionalism of managers is extremely important. If the team has several successfully operating mutual funds under its control, then the one you choose is more likely to get a good result. If a successful manager heads a newly created project, this is an excellent chance to invest and make money on its “promotion”.

With a short-term investment, you can count on excess income and invest in funds with a speculative strategy. But if you are looking forward to a long term, prefer projects with predictable and stable returns.

Useful material

Building wealth is the key to financial independence. In addition to money, capital includes groups of organized people who plan to use monetary resources to provide services and produce goods for other people and make a profit for themselves. People buy stocks, bonds and other assets, but most citizens are not sophisticated enough to manage them as effectively as possible. To reduce the risk of loss, investment management is transferred to special investment funds.

The reserve capital of individuals is formed by setting aside 10–50% of any profit. Such capital must work and bring in money, otherwise inflation will eat it up. The money is invested in your own business or in a bank deposit account, and is entrusted to managers for management at a certain percentage of the profit. An investment fund is a reliable way to “activate” money lying idle to generate passive income. There is a risk of losing part of your investment, but it is minimal thanks to capital management by professional players in the investment market.

To better understand the essence of an investment fund, watch the video:

Direct Investment Fund

Investment funds that deal primarily with securities and collectively manage common capital are private equity funds. They are presented on the market as LLCs - limited liability organizations, which have been operating for 10 years. To increase the period of work, an extension is made.

Example: Russian Direct Investment Fund LLC is an enterprise that uses money from investors (pension funds and insurance companies) to fund investments in various projects.

Financial and investment fund

The following investment fund invests in financial assets, but not in enterprise shares. The organization buys bonds, receipts, income certificates, and so on.

Venture fund

The term “venture” means “high-risk”. Venture capital investments are investments in startups. New projects often fail and do not bring any profit. But in case of successful implementation, investors receive from 50–1000% of the initial investment. The Venture Investment Fund is an organization that invests in the development of innovative projects. Investors - individuals, banks, large enterprises - receive a portion of the profits and occupy a specific niche in the market.

The purpose of the investment fund is to profit from the successful implementation of the project. Investments are made in projects from one industry with targeted investment or in several different areas of activity with diversified investment.

The purpose of the investment fund is to attract income from the implementation of the project. They have a specific focus and invest money in one industry, or distribute finances across several diverse, unrelated projects from different directions.

Forms of investment funds

There are several options for classifying the forms of investment funds. Each country independently determines the types of investment funds at the legislative level. In Russia they are divided into the following organizational and legal forms:

• government;

• non-state;

• collective;

• non-profit.

State

The founders of such an investment fund are government agencies: the government, the Ministry of Finance, the Central Bank. The main goal of organizations is to generate resources from the country’s internal reserves for development and solving national problems. The State Investment Fund invests in the field of social insurance, the welfare of the future people of the country, and fills the monetary gaps of the Pension Fund.

Example: Investment Fund of Russia.

Non-state

An investment fund created without the participation of the state is beneficial due to the responsibility assigned to it by law. If the organization fails and its license is revoked, investors will still receive a payout of their initial investment. When choosing an organization for investment, it is wise to analyze not only the possible profit, but also the number of investors, the time of active activity, and the level of public confidence.

Collective

More investors mean more capital, which means more opportunities for financial investments. When small investors put money into a corporate investment fund for an experienced manager to manage their assets, it is called a collective investment fund. The popularity of such a fund is explained by the opportunity to receive good profits from a relatively small capital.

Non-profit

Non-profit investment funds are creating an interesting form of investment. Investors make investments not for the sake of improving the well-being of themselves and their loved ones, but to improve the standard of living of the whole world. Investors' money is directed to charity, innovative developments, and promising scientific projects for the benefit of humanity.

Example: Red Cross, Doctors of the World, Soros Foundation, Wildlife Foundation.

Types of investment funds

The existence of other classifications of investment funds is explained by the fact that some of them perform the same functions, thereby forming groups. Depending on the legal form, the following funds are distinguished:

• trust;

• corporate;

• contractual

Depending on the structure and activity, the following types are distinguished:

• closed;

• open;

• mixed.

Closed

Closed-end investment funds are formed as joint-stock companies. They issue a limited number of shares on a public exchange, which are listed along with other securities. The real value exceeds or falls short of the nominal value, depending on current demand. The profitability and risk of participating in closed-end funds is much higher than in open-end funds. Only professional investors can become an investor in a closed-end fund.

Open

Open investment funds are more common in Russia. Investors of such funds constantly monitor profitability, and the activities of organizations are regulated at the legislative level. An investor can sell his part at any time without the consent of the fund’s founders. The main disadvantage is dependence on the state, which has the right to unreasonably prohibit the purchase of promising assets (thereby reducing potential profits).

Mixed

Mixed, or interval, funds provide the opportunity to receive growing income by distributing investments in 2 areas. Investment diversification is carried out 50/50 between bonds with stable returns and stocks that generate the main income. If stock prices fall during the financial crisis, a bond holding will help maintain income.

Joint Stock Investment Fund

A joint stock fund is an open society of shareholders that helps ordinary people invest. To become a participant in such an investment fund, it is enough to buy shares on the stock exchange (on the secondary market) or when creating the fund (at the first issue). When voucher privatization existed, people transferred their savings to voucher investment funds. In the future, checking funds were reorganized, merged, went bankrupt and eventually ceased to exist. Check funds have been replaced by various structures, including joint stock ones.

Mutual investment fund

Mutual funds are mutual investment funds, forms of general investment, multi-structured property complexes. They are companies of shareholders or organizations with mutual ownership for the collective ownership of assets. Mutual funds exist for the purpose of preserving and increasing the capital of their participants. The activity and number of such organizations is influenced by the state of the economy: a crisis reduces their activity, and a stable state increases it.

Investors are the share owners. The management of the fund is entrusted to a management company, which purchases securities using common investments to make a profit. All participants are entered into the register of shares, according to which the profits received are distributed.

Example: mutual funds of Alfa Bank, VTB 24, Sberbank and others.

Scheme of mutual fund activities:

• depositing shares into a general investment account;

• investment of funds by managers in profitable projects;

• distribution of the received profit between the manager and shareholders.

A minimum capital (from 1 thousand rubles) will allow you to start your investor journey through mutual funds. Generating income does not require much effort or deep knowledge, since the shares are managed by a responsible body. Mutual investments will be an excellent highly liquid asset in your investment portfolio. If necessary, such an asset can be easily sold.

Example

A group of friends of 5 people decided to start growing and selling nuts. They purchased several shares (hectares of land) and hired an experienced gardener to get a good harvest. The gardener plants and looks after the farm.

The harvest harvested in the fall is sold by the gardener; the friends divide the profits from sales equally between themselves and the gardener. Productivity directly depends on the actions of a professional; the shareholders’ task is to choose a good gardener for their land. If the decisions of the mutual fund manager are ineffective, he will receive less profit.

Mutual funds are classified according to the terms of the redemption of shares:

• open mutual funds - purchase/sale of shares at any time, unlimited number of participants, investment takes place in reliable, highly liquid instruments;

• closed, for example, real estate and innovation mutual funds - they sell shares one-time when the fund is founded, the sale is carried out upon the end of the existence of the share (within an agreed period);

• interval mutual funds - the purchase/sale of shares is agreed upon in advance at time intervals (monthly or quarterly), they work with the professional purchase/sale of shares on stock exchanges.

Depending on the direction of investment, mutual funds are divided into the following types:

• Equity funds - specialize in investing in shares. They work with different types of enterprises (based on capital turnover) - small (<500 млн. долл.), средними (500–5000 млн. долл.), крупными (>5 billion dollars), of which the last option is the most reliable. Investing in large enterprises is long-term with a minimum period of 3 years. The annual profit from investments in leading organizations, which are also called “blue chips,” is 10–15%;

Advice! When choosing a mutual fund, do not stop at just one - create a list of promising investment funds and buy shares of several of them.

• Real estate funds are organizations that make a profit by investing in the construction or rental of real estate, such as land, houses, apartments. Most of these funds are closed, as they work with low-liquid assets. Share contributions from investors start from $10,000 thousand. Such funds include mortgage funds, which make a profit on mortgage securities;

• Bond funds or bond funds are mutual funds that invest only in bonds. Fund investors receive a certain amount of dividends and profit from the difference in the purchase and sale prices of bonds. Net profit is 6–8%. Bond funds are classified depending on the issuer - municipal, state, corporate. Among all types, the most profitable are corporate funds, the most reliable are state and municipal;

• Money market funds are organizations that place half of their capital in deposits and use the other half to invest in bonds and currencies;

• Balanced funds are mutual funds that use different instruments in their work. They mainly invest in bonds and shares, as the most liquid assets.

Features of different mutual funds

Instructions for choosing an investment fund

The main thing in investing is to choose the right fund. It must correspond to the size of your individual capital and the main goal of your income - fast, constant, reliable.

Investment fund selection scheme:

1. Determining the size and period of investment - large capital expands the possibilities for placing investments. The funds define minimum investment periods - long-term for real estate funds and short-term for bond and stock funds.
2. Determining the type of fund - if you have experience in investing and the ability to adequately assess the ratio of profitability and risk, the road to venture, mixed funds and real estate funds opens. Without experience, it is better to invest in open-end funds that have highly liquid shares or shares.
3. Choosing a management company - managers rarely violate the rights of investors, since there is a law prohibiting unreasonable promises to investors. The activities of management companies differ in their ability to control the state of the investment portfolio: active, when the investor personally controls his investments to obtain maximum income (in open-ended funds) and passive deposits, when investors can forget about investments for a while (in closed-end or interval funds) .
4. Comparing ratings and monitoring reviews - various information resources make investment fund ratings publicly available. You should always use multiple sources to compare metrics. The most authoritative ones include government websites, websites of financial departments, and confirmed resources of famous investors.
5. Making a final choice - upon completion of a comprehensive analysis, it is recommended to visit thematic forums, look through discussions of promising industries and compare them with the activities of investment funds. It is advisable for beginners to be guided by the reliability of the fund and its stability.

Most investments in mutual funds are affordable and reliable instruments. The state regulates the transparency of the activities of such organizations, but does not fix the minimum profit of participants. Therefore, make it a rule to pay attention to the following indicators when choosing a fund:

• degree of risk;

• minimum share/share value;

• time of existence and work on the market;

• availability of preferential conditions for investors;

• net asset value

• the total amount of capital raised;

• profitability from all periods;

• terms of sale of shares/shares.

Tip: Select a fund by elimination using the instructions above. The safety and profitability of future investments depends on the amount of information analyzed.

Rating of Moscow mutual funds

Among the hundreds of active investment funds available to the average investor, there are a few that are the most stable. People living outside of Moscow can invest money and receive profits remotely.

Investment fund asset management

A management company is created to select optimal investment niches, timely purchase and sale of investments. She represents clients' interests in the investment market. All client funds are used to form a portfolio investment: purchasing currency, securities, opening deposits, sponsoring the opening or development of enterprises. According to the terms of the agreement between investors and the company, a certain percentage of the profit goes to cover the cost of the company’s services.

The activities of the management company are subject to obtaining a license from the state and are under regular control. To account for assets, an IIS is created - an individual investment account. The owner of such an account receives tax benefits, increasing overall income.

Regulation of the activities of investment funds

The activities of the investment fund are regulated by the Federal Securities Commission and the state through laws, instructions and regulations. The government adopts a general investment program and also manages public investment. Among the economic methods of regulating the sphere of investment:

• preferences;

• provision of credit funds;

• tax benefits;

• creation of free economic zones.

Advantages of investment funds relative to other investment options

• Professional management - specially trained people who are constantly in the flow of modern information and have experience in the investment market will manage capital. Their tasks are the distribution of cash flows, monitoring the financial situation, stock quotes, making decisions to maximize profits.

• Diversification of risks by forming portfolio investments - often a person cannot invest in different areas of investment due to lack of capital. Therefore, when one or two investments fail, he remains in the red. Investment funds have the opportunity to invest in different assets, reducing the risk of losing all investments.

• Possibility of choice - managing a million or three million rubles requires approximately the same amount of effort. Therefore, mutual funds help a group of people save money on asset management.

• Transparency of the asset management structure.

• The larger the capital, the greater the potential profit from it.

Attention! Despite all the advantages, mutual funds do not guarantee income for participants. Investors may lose their funds in the event of force majeure: financial crisis, falling markets, unsuccessful investments. The legislation does not establish any level of profitability for such structures.

Investment funds in Russia included in ratings of large enterprises

Most companies invest in funds to increase profits. Depending on individual goals, they form their top rating of investment funds.

Rating of the best open-ended investment funds by profitability

Name	Management Company	Growth, %	The essence of the activity
Eurobond Fund	Aton management	70,19	investments in Russian Eurobonds
VTB Eurobond Fund	VTB	69,74	receipt of coupon income and due to the growth of bond rates
URALSIB Industry Investments (Growth Stocks)	URALSIB	69,09	investments in shares of enterprises and profitable industries in Russia
RSHB Currency bonds	RSHB	61,71	investing property in investment properties
Sberbank - Consumer sector	Sberbank	60,24	Purchasing shares of companies and organizations in the consumer sector

You can use independent information resources to monitor fund ratings: http://pif.investfunds.ru/funds/rate.phtml

Conclusion

You learned how to select an investment fund from a huge number of possible ratings. Now your capital can increase without much effort by making smart investments.